As mortgage professionals one of the most critical parts of being the “person in the profession” is to use your knowledge to provide information and manage expectations. There are many ways to do this, but being aware of just a few small things can often make all the difference between a great experience and a total train wreck of a transaction. It is up to the mortgage professional to be aware of a client and the referral partner’s expectations as early as possible and to manage these expectations through the filter of communication.
Since all markets and clients, as well as their transactions are different, I will have to speak in general terms but you will quickly be able to adapt these to your situation. There are three basic rules I like to have people follow in order to help set the stage.
- Always ask the client to explain to you what their specific goals are for this transaction. If there is more than one client, get all of them to tell you!
- Get really clear as to the client’s priorities in case they can’t have 100% of what they want.
- Keep everyone on the same page by keeping communication open with all the players on the same team.
A mortgage professional that adapts a proactive position of information and communication tends to avoid issues down the road. Dealing with a false reality in the very beginning may be an issue, but it will be a smaller issue than trying to deal with it once a transaction has begun and as you get close to closing! It is always better to risk losing a deal to someone who will promise the world and not be able to deliver on false promises than to be the one fighting at closing because things didn’t go as promised. There are enough issues that can complicate any transaction without dealing with the ones you can easily identify up front! NOBODYis going to get a 3.25% rate on a 30 year fixed with a $5K lender credit with a 580 credit score and 100% financing!
The facts of every transaction can vary, but the internet is full of generic information that usually won’t apply 100% of the time to all people. You will find that explaining things clearly as the “WHY”things are the way they are will be helpful. It is important to remain calm and explain clearly.
When you are clear about expectations it is always good to compare reality to the emotion of the situation. People get very emotional about interest rates and closing costs. If you take the time and “range base” payments, you will see that those painful moves in rates during the transaction are comfortable to deal with because the client has been prepared for the payments inside the range you set forward.
The same thing holds true for closing costs. It costs what it costs! Get really clear as to everything they can expect and be sure to be accurate in your numbers while explaining what control your client may have on the actual numbers.
Last but not least, keep everyone on the same page that is on the same team. If you have two borrowers and a buyer’s agent, be sure you set the stage for all of them by connecting them on notifications. If you have a phone call or text message with any one of the parties, be sure you confirm by email or video to all parties your answer or explanation. This can save a huge amount of time and trouble if someone misremembers a conversation along the way!
The market is changing and the industry as a whole is evolving. As mortgage professionals, we need to use our expertise to guide people to a successful conclusion. We must remember that we are ultimately responsible for setting the proper expectations and providing the path for a successful transaction while setting the foundation for a long term relationship!
Questions or comments: Mike@IMTcoaching.com